Synopsis: Avantel Limited has received a firm purchase order worth Rs 83.80 crore (including taxes) from Zetwerk Manufacturing Businesses Limited for the supply of satellite communication equipment.
The transaction marks a crucial milestone in executing a pre-existing long-term commercial framework between the two entities. Avantel Limited is currently trading at Rs 179.33. The stock opened at Rs 171.80, reached a day high of Rs 181.31, and has so far recorded a day’s low of Rs 171.76. The current market capitalisation of the company is Rs 4,764 crore and is trading at a p/e ratio of 313, way higher than the industry peer median of 62.64.
The company has received a firm purchase order of Rs 83.80 crore from Zetwerk Manufacturing Businesses Limited against the rate contract awarded to the company earlier. The order covers the manufacturing, supply, commissioning and one-year comprehensive on-site warranty for satellite communication equipment, with the completion deadline set for March 2027.
Satellite communication equipment is essential for defence, aerospace and strategic communication systems, providing reliable and secure connectivity when conventional telecom networks are unavailable. In addition to the product delivery, it also produces additional after-sales service income through the 1-year warranty.
The firm order turns the earlier rate contract into a revenue-generating project, with better visibility on revenue through FY27. It continues to show confidence in Avantel’s execution capabilities from Zetwerk, strengthens its presence in defence communication programmes and does not change its business model or risk profile. It also stated that the transaction was unrelated to its promoters or group entities.
Financials
The company reported an operating revenue of Rs 63.83 crore in Q4 FY26 compared to Rs 51.72 crore in Q3 FY26 and Rs 49.26 crore in Q4 FY25. Revenue was up 23.4 percent from the previous quarter and 29.6 percent from the previous year.
The company posted a net profit of Rs 4.77 crore in Q4 FY26 as against Rs 2.74 crore in the previous quarter, registering a growth of 74.1 per cent. However, net profit dipped 21.5 per cent year-on-year to Rs 4.78 crore, down from Rs 6.08 crore in Q4 FY25. Earnings per share (EPS) increased to Rs 0.18 from Rs 0.10 in the previous quarter but fell short of Rs 0.23 in Q4 FY25.
In terms of return ratios, the company reported a ROCE of 9.63 percent and ROE of 5.29 percent. The debt-to-equity ratio stood at 0.10x, indicating a low level of leverage. Over the longer term, the company has delivered a 5-year sales CAGR of 23 percent, while 3-year sales CAGR stood at 13 percent. However, 3-year profit CAGR declined 17 percent.
Avantel Limited is an Indian defence and aerospace technology company engaged in the design and manufacture of satellite communication systems, wireless communication equipment, radar subsystems, network management solutions and embedded electronics for defence, space and strategic communication applications.
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